Average Salary Falls to £3.4m, Women’s Share of Total Pay Increases Slightly
- CEOs of FTSE 100 companies saw a 13% decrease in salary year-on-year
- Average CEO pay was £3.4m in 2018
- Only 43 CEOs received a pay increase last year
- Total CEO pay for FTSE 100 companies was £465.4m
- Women make up 6% of FTSE 100 CEOs, earning 4.2% of total pay
- Marks & Spencer and Next CEOs took pay cuts last year
CEOs at FTSE 100 companies experienced a 13% decrease in their average salary year-on-year, dropping to £3.4 million in 2018. According to the High Pay Centre and Chartered Institute of Personnel and Development (CIPD), only 43 CEOs saw an increase in pay last year. The total pay for these executives amounted to £465.4 million, with an average salary of £4.7 million across 99 chief executives. Despite women making up 6% of FTSE 100 CEOs, they earned just 4.2% of the total pay, a slight improvement from the previous year’s 3.5%. Notably, Marks & Spencer’s Steve Rowe and Next’s Simon Wolfson both experienced pay cuts, with decreases of 37% and 32%, respectively. The average CEO salary remains 144 times higher than the UK’s average worker wage of £24,000.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the decrease in CEO salaries and gender pay gap within FTSE 100 companies, citing reliable sources and presenting relevant data. It also includes specific examples of CEOs who experienced pay cuts. However, it could be improved by providing more context on the methodology used to calculate the average salary and explaining how the data was collected.
Noise Level: 6
Noise Justification: The article provides relevant information about the decrease in CEO salaries and gender pay gap within FTSE 100 companies, but it could benefit from more analysis or context on the reasons behind these changes and potential implications for the business world.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the salaries of FTSE 100 CEOs and their impact on company shareholders and investor sentiment.
Financial Rating Justification: This article is financially relevant as it discusses the salaries of top executives in major UK companies, which can affect shareholder confidence and investor perception. The pay cuts for some CEOs may impact the companies’ stock prices and overall financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Nil
Extreme Rating Justification: There are no extreme events mentioned in the article.
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